Oireachtas Joint and Select Committees

Tuesday, 5 February 2013

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Reform of National Micro and Small Business Support Structures: Discussion

2:35 pm

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail) | Oireachtas source

Upward-only rent reviews is one issue. There are big companies that can afford the examinership process, but most people cannot afford that process. There is still a problem in provincial towns where landlords who are locked into mortgages are not dealing with tenants. As Deputy Tóibín has said, the State is also a player in this regard. As a landlord itself, it is enforcing upward-only rent clauses. Whatever about private companies, the State can lead on this issue.

The Secretary General appeared before the committee last week and has provided figures today in respect of the credit guarantee scheme and the microfinance scheme. Under the credit guarantee scheme only ten approved credit guarantees had been issued up to 22 January, representing about €1.117 million. This seems low; is the Minister happy with the scheme? The Minister may not have the information with him, but how many requests were turned down? An issue we raised with the Secretary General last week and one we are hearing from companies is the interest rate on Microfinance Ireland. He gave a very good and robust explanation of it in relation to risk factors. There is a 5% margin on the product for Microfinance Ireland, which is a high margin in the current climate. Many companies would be pleased to have a 5% margin.

A serious problem is unfolding in Monaghan with regard to employment at Silvercrest and at the other company whose name emerged this morning. Has the Department consulted with the enterprise board, the local authority, IDA Ireland or Enterprise Ireland on the issue? Can the Minister give the committee any information on the Department's or the agencies' response to what is a potentially serious issue?

Comments

No comments

Log in or join to post a public comment.